MSI Press Blog

  Authors frequently confuse LIST and NET and, in this way, end up with contracts that pay lower royalties when they believe that they are getting a good deal. Often, they cannot negotiate in ways that benefit themselves because they do not understand this difference and its significance. Let's break this down. List refers to the retail price of the book. Payment on list means a percentage of the retail price of the book. If royalties are 8% of list (5-8% is typical), then on a $10 book, royalties would be 80 cents; if they are 10%, royalties are $1, on every book sold. Easy to calculate, easy to predict income, and always standardized, no surprises or overestimations. Net refers to what is leftover after expenses. Gross revenue gets adjusted by a number of expenses: printing costs, printer set-up fees, shipping costs, handling fees, distributor percentage of sales (typically, 40%-55% per book), distributors' initial and continuing catalogue listing costs (without which online ...

It is Tuesday. Monday's madness is over, and Wednesday will take us over the hump, so Tuesday it is--for some serious discussion with authors. Tuesday talks mean to address authors in waiting and self-published authors who would like to go a more traditional route or who would at least like to take their steps with a publisher by their side.   Since today is Tax Day, it seems like an appropriate time to explain how royalties and taxes are intertwined. Some authors become quite confused. Well, it is confusing because of the multiple years involved in royalty statements, payments, 1099s, and tax filings. Here is a visual that might help.   Books sold Royalties paid MSI sends 1099 to IRS and author Authors report royalties on 1040 (and to state) 2023 2024 2025 (January) 2025 (April) 2024 2025 2026 (January) 2026 (April) 2025 2026 ...

  It is Tuesday. Monday's madness is over, and Wednesday will take us over the hump, so Tuesday it is--for some serious discussion with authors. Tuesday talks mean to address authors in waiting and self-published authors who would like to go a more traditional route or who would at least like to take their steps with a publisher by their side.  This week, we share a conversation with a first-time author, who is new, naive, and nervous when it comes to the financial side of authoring a book. Specifically, this author clearly did not understand the difference between royalties on list and royalties on net. The pertinent part of the conversation elucidating these differences is reproduced here. Typical Royalties on List and on Net Briefly, royalties paid on list are paid at a percentage of the list price of the book. Royalties paid on net are paid at a percentage of what the publishing house "earns" after costs are subtracted from gross revenue. The differences are explicate...

  It is Tuesday. Monday's madness is over, and Wednesday will take us over the hump, so Tuesday it is--for some serious discussion with authors. Tuesday talks mean to address authors in waiting and self-published authors who would like to go a more traditional route or who would at least like to take their steps with a publisher by their side.  Today's post attempts to answer royalties and the filing of taxes -- yes, it is that time of year! What to File If you received more than $600 in royalties last year (2023), your publisher is required to send you a 1099 with the amount of royalties paid listed. The 1099 is due by January 30. Chances are that your publisher did not take out taxes from your royalties. That is just not "a thing," so you will have to figure out what you owe the IRS from your earnings. If you received less than $600 in royalties last year (2023), your publisher will not send you a 1099. However, you are still required to report all royalties receive...